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The basis of Commonwealth NHR funding for 2014-15, 2015-16 and 2016-17 as specified in the Agreement is as follows:

Public Health (clause A34)

Payments for Public Health activities for 2014-15, 2015-16 and 2016-17 will be equal to the previous year's payment indexed by the former National Healthcare SPP growth factor.

Block Funding (clause A50)

Payments for 2014-15, 2015-16 and 2016-17 will consist of the previous year's payment plus 45 per cent of the growth in the efficient cost of providing the services, adjusted for the addition or removal of block services as provided in clauses A27-A30 (calculated in accordance with clause A4).

Activity Based Funding (clause A34)

In 2014-15, 2015-16 and 2016-17, the Commonwealth's funding for each Activity Based Funding (ABF) service category will be calculated individually for each State by summing:

previous year amount: the Commonwealth's percentage funding rate for the relevant State in the previous year multiplied by the volume of weighted services provided in the previous year multiplied by the national efficient price in the previous year;

price adjustment: the volume of weighted services provided in the previous year multiplied by the change in the national efficient price relative to the previous year multiplied by 45 per cent; and

volume adjustment: the net change in volume of weighted services to be provided in the relevant State (relative to the volume of weighted services provided in the previous year) multiplied by the national efficient price multiplied by 45 per cent.